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Subsequent Events
3 Months Ended
Nov. 28, 2015
Subsequent Events [Abstract]  
Subsequent Events

NOTE 7 – SUBSEQUENT EVENTS

 

Dutch Auction Tender Offer

 

On December 8, 2015 we announced that our Board of Directors approved a modified Dutch auction tender offer for up to $35.0 million in value of shares of our common stock at a price within (and including) the range of $15.50 to $17.75 per share.  The tender offer commenced on December 14, 2015, and will expire at 11:59 p.m. Eastern time, on January 12, 2016, unless extended by Franklin Covey.  Tenders of our common stock must be made prior to the expiration of the tender offer and may be withdrawn at any time prior to the expiration of the tender offer.  The tender offer is subject to terms and conditions described in the Offer to Purchase filed with the SEC on December 14, 2015 and distributed to shareholders.

 

We intend to finance the tender offer primarily from (i) available cash and (ii) either our existing revolving line of credit or, if in place prior to the expiration of the tender offer, a new $20.0 million term loan.

 

This report is not an offer to purchase or a solicitation of an offer to sell the Company’s securities.  The solicitation and the offer to purchase the securities will only be made pursuant to the Offer to Purchase and related materials.  The Company filed a Tender Offer Statement on Schedule TO with respect to the tender offer on December 14, 2015.

 

The Company’s shareholders are advised to read the Schedule TO (including an offer to purchase, a related letter of transmittal and other offer documents), as each may be amended or supplemented from time to time, and any other relevant documents filed with the SEC when they become available, before making any decision with respect to the tender offer because these documents contain important information about the proposed transaction and the parties thereto.

 

Investors and shareholders may obtain free copies of the Schedule TO, as amended or supplemented from time to time, and other documents filed by the Company, at the SEC’s website at www.sec.gov, by contacting the Company by mail at 2200 West Parkway Blvd., Salt Lake City, UT 84119, by telephone at (801) 817-1776, or through the investor relations portion of the Company’s website at www.franklincovey.com.